JSAF Capital, partners pay $3.4M for two walkups in Gowanus

JSAF Capital, Arthur Gabriel, and Suren Gabriel through the entity 522 4th Ave LLC paid $3.4 million to the estate of Reynald Orlando for the eight-unit residential walkup building (C1) at 520 4th Avenue in Gowanus, Brooklyn and eight-unit residential walkup building (C1) at 522 4th Avenue in Gowanus, Brooklyn.
The deal closed on January 18, 2024 and was recorded on January 29, 2024. The two properties have 13,440 square feet of built space and 15,782 square feet of additional air rights for a total buildable of 29,233 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $249 and the price per buildable square foot is $114 per the PincusCo analysis. (The price per square foot analysis is the transaction price divided by square feet as reported in public records and assumes no air rights have been sold.)
The signatory for the estate of Reynald Orlando was Marie Gladys Orlando. The signatory for JSAF Capital, Arthur Gabriel, and Suren Gabriel was Joseph Safdie. The contract date was November 8, 2023.

Because multiple properties have been transacted, some of the following sections will follow the property with the largest assessed value, which in this case, is the property on 520 4th Avenue.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer JSAF Capital purchased three properties in two transactions for a total of $11.8 million and has no record it sold any properties over the past 24 months.
The seller Reynald Orlando had not purchased any other properties and had not sold any properties over the same time period. The former owners according to the Department of Housing Preservation and Development includes Reynald Orlando, individual owner and Reyanald Orlando, site manager.

The property

The residential walkup building with 8 residential units in Gowanus has 13,440 square feet of built space and 15,782 square feet of additional air rights for a total buildable of 29,233 square feet according to a PincusCo analysis of city data. The parcel has frontage of 28 feet and is 86 feet deep with a total lot size of 2,428 square feet. The zoning is C4-4D which allows for up to 3.4 times floor area ratio (FAR) for commercial and up to 6.02 times FAR for residential with inclusionary housing. The city-designated market value for the property in 2022 is $2 million.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the properties for the past 24 months. In addition, according to city public data, the properties have received two DOB violations, 53 housing violations, $1,600 in OATH penalties, and one housing litigation in the last year.

Development

There are no active new building construction projects or major alteration projects with initial costs more than $1 million on this tax lot.

The block

On the tax block of 520 4th Avenue, PincusCo has identified the owners of two of the 15 commercial properties representing 15,176 square feet of the 102,984 square feet. The two identified owners are Nicholas Valentino and Jsaf Capital.
There are no active new building construction projects on this tax block.

The majority, or 46 percent of the 102,984 square feet of built space are walkup buildings, with hotel buildings next occupying 24 percent of the space.

The buyer

The PincusCo database currently indicates that Jsaf Capital owned at least three commercial properties with 35 residential units in New York City with 29,266 square feet and a city-determined market value of $6.1 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 56 percent of the 29,266 square feet of built space are elevator properties, with walkup properties next occupying 29 percent of the space. They are all located in Brooklyn.
The PincusCo database currently indicates that Arthur Gabriel owned at least one commercial property in New York City with 10,400 square feet and a city-determined market value of $1.7 million. (Market value is typically about 50% of actual value.) The portfolio consists of at least a single retail property. It is located in Brooklyn.

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